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dezoksy [38]
3 years ago
8

If you deposit $5,000 in an account that earns 2% interest, compounded continuously, how much money will be in the account after

seven years?
$5,751.37

$5,743.43

$5.101.01

None of the above
Mathematics
1 answer:
Ksivusya [100]3 years ago
5 0

Answer:

$5751.37

Step-by-step explanation:

The key phrase here is "compounded continuously".  This phrase tells you that you must use the following equation:


A=Pe^{rt}

Where A is the final amount, P is the principal amount, e is the exponential constant, r is the rate in decimals and t is time.  By plugging in our known values given we obtain:


A=5000e^{0.02 \times 7}=5751.37

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